Why We Hold Forever: Our Approach to Permanent Capital

The Problem with Fund Cycles

Traditional private equity funds have a structural problem: they must return capital to LPs within a defined window, typically 5-7 years. This creates misaligned incentives. Fund managers are optimizing for IRR, which often means selling great companies too early or over-leveraging to boost returns.

For software companies, this timeline is particularly problematic. The best software businesses compound value over decades. Selling a company generating 30% annual returns after 5 years to juice IRR destroys long-term value.

Permanent Capital Changes Everything

We structured GASJ as a permanent capital vehicle. We have no obligation to sell. This simple structural change cascades through every decision we make:

Investment Selection: We can own "boring" but durable businesses that compound at 15-20% annually. We don't need to chase high-risk, high-return opportunities to hit fund return targets.

Operational Decisions: We can invest in initiatives with 5+ year payoffs. R&D projects, platform migrations, market expansions—all become viable when you're not racing a fund clock.

Management Alignment: Operators can focus on building enduring businesses rather than preparing for a sale. Stock options become more valuable when there's a credible path to long-term ownership.

When We Would Sell

Permanent capital doesn't mean we never sell. We will exit a position when:

The business fundamentally changes in ways we can't adapt to

We've made a mistake in our investment thesis

An acquirer can create more value than we can (rare, but possible)

Management wants liquidity and we can't provide it internally

What we won't do is sell because a fund is expiring or because an investment banker shows us a flattering multiple.

The Trade-offs

This approach isn't without costs. Permanent capital structures are harder to raise. Many LPs prefer the defined liquidity of traditional funds. We accept a smaller capital base in exchange for flexibility.

We also can't promise eye-popping IRRs. We optimize for absolute returns and durability. If you're looking for 3x in 3 years, we're not the right partner.

Our Commitment

To founders and operators: we won't flip your company. We'll support you through multiple economic cycles. We'll reinvest in the business rather than extracting dividends.

To our partners: we'll compound capital patiently. We'll be transparent about performance. We'll never sacrifice long-term value for short-term metrics.

Building enduring technology companies is hard. It requires patient capital. That's what we provide.